The invention discloses a fabric fuzzing and pilling image segmentation method based on wavelet transformation and the morphological algorithm. The method comprises the steps that firstly, histogram equalization is carried out on an acquired fabric fuzzing and pilling image, and eight-stage multi-resolution wavelet decomposition is carried out; secondly, after the coefficient of a first-stage wavelet decomposition layer, the coefficient of a second-stage wavelet decomposition layer and the coefficient of an approximate wavelet decomposition layer are set to be zero, the image is reconstructed, wherein the first-stage wavelet decomposition layer and the second-stage wavelet decomposition layer express the highest-frequency information, and the approximate wavelet decomposition layer expresses low-frequency information; thirdly, binaryzation is carried out on the constructed image according to the maximum between-cluster variance method, and erosion is carried out on the image through a horizontal linear structure element, a 45-degree linear structure element, a vertical linear structure element and a 135-degree linear structure element in sequence; fourthly, dilation is carried out on the eroded image through structure elements with the sequence opposite to that of the structure elements applied to erosion, namely, the 135-degree linear structure element, the vertical linear structure element, the 45-degree linear structure element and the horizontal linear structure element in sequence. By means of the method, the influence of the texture of fabric, illumination unevenness, the surface roughness of the fabric and the size difference and shape difference of fuzzy balls on fuzzing and pilling grade assessment on the fabric can be effectively avoided.